How we connect to our cars - Click to tweet

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How we connect to our cars - Click to tweet
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                 How we connect to our cars
How we connect to our cars - Click to tweet
Table of contents
Introduction                                   3
Executive Summary                             6
Implications for Marketers                    12
Changing Attitudes Toward Car Ownership       17
The Rise of Ride/Car Sharing Services         25
Connected Car Decision Journey                33
  Pre-Purchase                                39
  During Purchase                             55
  Post-Purchase                               59
In-Car Apps & Automotive Connectivity Index   84
How we connect to our cars - Click to tweet
Introduction
Today’s consumers expect constant connectivity. The shifts in behavior driven by mobility – the
ability to be connected through smartphones, tablets, and other devices at all times – have had far-
reaching implications in nearly every sector.

Amidst these market changes, MRY wanted to understand the impact of connectivity in a place
where most Americans spend a lot of time – their cars – in this first report in our series on the
Future of Mobility.

The goal of this study was to uncover the changing attitudes toward car ownership, interest in car
sharing services, the impact of connectivity on the automotive purchase decision journey, and how
these topics interact as an indicator of future connected car ownership. We examined each topic
with a particular focus on Millennials, a generation identified as the first in America with decreasing
interest in car ownership, as indicators of where the market is headed.
The results have implications for marketers, auto manufacturers, and technology firms looking to
succeed in a connected world.

                                                                                                          3
How we connect to our cars - Click to tweet
What Does This Mean for Me?
As substantial as this study is, there’s even more research conducted that wasn’t included here.
And ultimately, with all the research here as it stands, the most important takeaways are going
to be the ones specifically relevant to your own business.

If you would like to discuss more specific implications more, have questions about the research,
or would like to dive deeper into any part of this, please reach out to us via either of the contacts
below, or through our site or social channels.

David Berkowitz, Chief Marketing Officer
David.Berkowitz@mry.com

Evan Kraut, Executive Director of Business Development
Evan.Kraut@mry.com
How we connect to our cars - Click to tweet
Methodology
How we connect to our cars - Click to tweet
Methodology
We executed a two-pronged approach for this study:

      FIRST-PARTY RESEARCH                                             SOCIAL LISTENING
 Online quantitative study run by Whitman Insight            Boolean framework to filter conversation around
 Strategies in January 2014                                  automotive connectivity in party with Mashwork

 N = 1,000 adults aged 18+ who use smartphones               Evaluated two years of consumer conversations (January 1,
                                                             2012 to December 31, 2013) to understand:
 Must own a mobile smartphone (and say it is essential to    • Importance of automotive connectivity within purchase
 their day-to-day life) and a driver’s license                 decision journey
                                                             • Branded and non-branded conversations surrounding
 • 500 Millennials (aged 18-34) & 500 adults aged 35+          automotive connectivity
 • Subsample of 300 respondents from Top 10 DMAs in the      • Change in key perceptions around connected cars
   U.S.
 • 50/50 gender split                                        In addition:
 • Regional quotas set to match U.S. Census                  • Ranked 12 original equipment manufacturers (OEMs) by
                                                               levels of total connectivity conversation and contained
 Margin of error at the 95% level of confidence is ±3% for     sentiment
 the entire sample                                           • Examined sample of Twitter users that engaged during
                                                               the Connected Car Decision Journey and analyzed
                                                               profiles for demographic and psychographic qualities

                                                                                                                         6
How we connect to our cars - Click to tweet
Executive
Summary
How we connect to our cars - Click to tweet
Americans of All Ages Still Love Their Cars
Car ownership remains a fundamental aspect of American life

Despite the declining number of 16-year-olds with drivers licenses and the emergence of car-
sharing services, owning a car is still a fundamental functional and aspirational part of American
life.

  • 94% of Millennials surveyed (and 99% of adults 35+) own or lease a vehicle
  • 91% overall say that owning a car is very important to their life – more than who said the
    same of high speed internet access, having a smartphone, or email

However, having access to and owning a car are synonymous for most, with more respondents
preferring access over ownership. Coupled with the rise of the sharing economy, this could be
an early indicator of shifting attitudes toward ownership and increased interest in car sharing
services as a means of access to vehicles.

                                                                                                     8
How we connect to our cars - Click to tweet
Wait, Millennials Still Want to Buy or Lease Cars?
This study does find strong interest in cars from Millennials, flying in the face of some other
research showing waning interest among that demographic. There are a few explanations for this:

  • Our survey required participants to have a valid driver’s license so we could talk to those with
    interest in both mobile and automotive products. In the survey of 1,000 adults with a license,
    96% overall said that they currently own or lease a car. Additionally, we screened out 65
    individuals who said they did not currently have a license. Looking at the incidence of auto
    ownership based on 1,065 individuals, the number drops to 90% - in line with other research.

  • The other significant issue which the survey doesn’t take into account is the decline in
    driver’s licenses as a percentage of the US population – which is especially apparent among
    younger consumers. This study does show the importance of owning a car high for
    Millennials (87%) but still significantly below older generations. And, as expected, interest in
    car and ride-sharing services is greatest among Millennials.

                                                                                                       9
How we connect to our cars - Click to tweet
Connectivity Conversation Building
Connectivity is growing in importance as a driver of purchase intent

Conversation around consideration of connected cars increased by 359% compared to the
previous year, underscoring the increasing importance for connectivity among automotive
consumers.

  • Overall conversation about automotive connectivity increased 15% over the previous year, with
    Millennials increasingly driving connected car consideration

  • Millennials talk about connectivity nearly 2.5x more than the average Twitter user

However, all signs point to cars as docking stations. Conversations indicated less interest in
automotive manufacturer systems such as navigation and add-on apps and features that are often
accompanied by a hefty price tag and ongoing subscription fees.

A leading driver of consideration of connected cars seems to be smartphone connectivity – being
able to seamlessly connect one’s smartphone in order to access features and capabilities while in
the car.

                                                                                                    10
Connectivity a Perk, not yet a Necessity
Despite rising interest, connectivity in cars is still in its infancy

Two areas driving the majority of growth in connected car conversations in 2013 were
consideration of connected cars and experiencing issues with connected cars. OEMs still have a
ways to go before connectivity is an integral driver of purchase intent.

  • Connected car features were most commonly discussed alongside added bonus features such
    as entertainment systems and custom paint jobs, indicating that connectivity is still viewed as
    a luxury item or a “nice to have.”

Given the trajectory of mobile growth, it is likely that connectivity will be an important facet of
automotive differentiation in the future.

                                                                                                      11
Brands Take a Backseat
The title for “most connected” is still up for grabs

OEMs (original equipment manufacturers) that over-indexed in connectivity conversation also
under-indexed in consumer satisfaction with their connected technology. Inversely, the brands that
drove the largest amount of satisfaction with their connected technology also saw the least
amount of conversation driven by connectivity. What’s more, the average percentage of
conversation that mentioned automotive connectivity among the leading OEMs was only 3% of
total OEM conversation.

OEMs have a long way to go toward raising consideration and preference for connected
technology. Another key finding of this study is that technology brands like Google and Apple, as
well as car/ride sharing brands like Uber and Zipcar, score significantly higher than OEMs on being
perceived as innovative and having a personal connection to the brand.

In an age where connectivity is critical and access equals ownership, making these gains will be
important for OEMs to remain relevant, particularly to the Millennial audience.

                                                                                                   12
Implications
     for
 Marketers
Look to Access over Ownership
As access trumps ownership for more car drivers, the notion of the vehicle as docking station
will become even more critical.

  • Already, connectivity conversation indicates that smartphone integration is more important
    than ‘smart’ standalone services offered by manufacturers, such as GPS or entertainment
    systems

  • The smartphone is already the personal command center for most individuals, and
    particularly with the rise of car/ride sharing services, users must be able to seamlessly plug-
    and-play with a vehicle that isn’t their own

  • OEMs need to embrace the smartphone model of remote system upgrades and short
    development cycles to keep their technology current

                                                                                                      14
Connectivity Starting to Impact Purchase Decisions
Connectivity as a driver of vehicle consideration is still in its infancy and will continue to grow in
importance.

  • CES dominates connectivity conversation, indicating that connectivity is still largely a topic
    that appeals to a tech-savvy audience that’s already very interested in the automotive
    industry

  • Currently, connectivity conversation is male-dominated. There is a big opportunity to speak
    to a broader audience about connectivity

  • However, mass appeal of connectivity in the car will continue to be stunted until technology
    reaches a level of ease and sophistication that smartphone users have come to expect

  • As the playing field levels on other core consideration factors, such as vehicle quality and
    safety, connectivity will be a larger driver differentiation – which is an even bigger reason for
    OEMs to embrace innovation in their current approach to connectivity in their vehicles

                                                                                                         15
Auto and Tech Brands Have Room to Stand Out
We’ve only scratched the surface of what car connectivity can do for the driving experience.

  • As most manufacturers still struggle to develop basic connectivity to the smartphone, there
    remains a huge white space for new features and functionality that go beyond basics to truly
    build on and enhance the driving experience

  • This is an opportunity for tech companies looking to build out offerings that interface with
    car connectivity systems, as well as brands looking to partner with OEMs (like Starbucks or
    Chevron) to create experiences that benefit drivers

  • In addition to improving car driving experiences, such as access to food and services as well
    as convenience of facilities and services, connectivity has the potential to solve some of the
    problems that have plagued drivers, such as traffic accidents, traffic and general safety on
    the road

                                                                                                     16
Changing
 Attitudes
Toward Car
Ownership
Car Ownership Remains Paramount

While attitudes might be shifting, our study suggests that car ownership isn’t going away
anytime soon.

Yet as ownership becomes more interchangeable with access, it will become even more
important for OEMs to deliver on the things that potential car buyers care about.

As this study suggests, those things include more than what a car is equipped with – it has to do
with what a car allows people to do and experience. This is precisely where cars and mobile
phones (and more broadly, connectivity) intersect.

                                                                                                    18
Car Ownership Isn’t Going the Way of the Dodo
Just Yet…
         Own/Lease a Vehicle                           Importance of Owning a Car
                      % Yes                                     % Top 2 Box (4-5)
          96%            94%          99%       100%                                   94%
100%                                                        91%
                                                                          87%

80%                                             80%

60%                                             60%

40%                                             40%

20%                                             20%

 0%                                              0%
       Total Mobile    Millennials   Aged 35+            Total Mobile   Millennials   Aged 35+
       Smartphone                                        Smartphone
          Users                                             Users
Cars Remain Prized Possessions
                                                                     Importance of Products & Services
                                                                                                      % Top 2 Box (4-5)
       I cant imagine my life without it                   4 (on 5 point scale)

                                                 Total                                                             Millennials (18-34)                                                                  Age 35+
                    Car                       71%	
                            19%	
        91%	
                     61%	
                        26%	
         87%	
                                        82%	
                         13%	
  94%	
  
           High Speed
       Internet access                      62%	
                        28%	
             89%	
                      62%	
                         27%	
          89%	
                              62%	
                       28%	
          89%	
  
   Mobile Smartphone                   50%	
                         34%	
               84%	
                      51%	
                    35%	
               86%	
                            48%	
                     33%	
            82%	
  
                  Email                50%	
                     33%	
               83%	
                      45%	
                     35%	
               80%	
                                 55%	
                      31%	
           86%	
  
         Text Message             37%	
                    35%	
               72%	
                          41%	
                      38%	
                79%	
                       33%	
                   32%	
          65%	
  
        High Definition
             Television         28%	
            28%	
           55%	
                                    24%	
           28%	
           52%	
                                           31%	
                 27%	
        58%	
  
              Facebook       20%	
           27%	
          47%	
                                        21%	
            32%	
            54%	
                                     18%	
          21%	
         40%	
  
Newspaper Subscription
       (print or digital   13%	
   19%	
          32%	
                                               11%	
   16%	
       27%	
                                                     15%	
          22%	
         37%	
  
                 Skype     10%	
  16%	
       25%	
                                                   13%	
   20%	
            33%	
                                              6%	
  11%	
      17%	
  
                Twitter    8%	
  13%	
      21%	
                                                     10%	
   17%	
       27%	
                                                   6%	
  9%	
      16%	
  
             Instagram     8%	
  13%	
      20%	
                                                     11%	
   20%	
           31%	
                                          5%      5%	
   10%	
  

                                                                                                                                                                                                                                                20
But for Most, Access Is Ownership
                                                   Importance of Goals/Aspirations/Activities
                                                                                                     % Top 2 Box (4-5)
       Very Important             4 (on 5 point scale)

                                                 Total                                                                Millennials (18-34)                                                              Age 35+
Having access to a car/vehicle
    that I can use when I need                       68%	
                          22%	
       90%	
                   57%	
                        29%	
           86%	
                                  78%	
                        16%	
     94%	
  
     Having a place of my own
          (home/apartment)                           67%	
                          22%	
       90%	
                    59%	
                       28%	
           87%	
                                  76%	
                       16%	
      92%	
  
Owning or leasing a car/vehicle                   58%	
                          29%	
         87%	
                   50%	
                     33%	
           84%	
                                65%	
                         25%	
          90%	
  
           Helping others who
                    need help              41%	
                       37%	
               77%	
                 39%	
                     38%	
               78%	
                         42%	
                       35%	
           77%	
  
              Raising a family                   53%	
                   20%	
        73%	
                        46%	
                   24%	
           70%	
                                     59%	
                   16%	
      75%	
  
           Voting in elections              42%	
                 26%	
             68%	
                      33%	
                  29%	
          62%	
                                        51%	
                   23%	
         74%	
  
     Doing my part to help the
                environment            28%	
                 34%	
               62%	
                        29%	
                  36%	
             65%	
                            27%	
                  32%	
          59%	
  
          Volunteering time to
             charitable causes       21%	
             32%	
             54%	
                              21%	
                36%	
           57%	
                                21%	
             29%	
            50%	
  
                 Being wealthy      18%	
          25%	
         43%	
                                       23%	
               30%	
          53%	
                               12%	
   21%	
              33%	
  
                 Being famous     8%	
  8%	
     17%	
                                                    12%	
  12%	
     24%	
                                               4%
                                                                                                                                                                                      5%	
  9%	
  

                                                                                                                                                                                                                                                  21
Millennials:
Intersection of Car/Vehicle & Mobile Smartphone
     Having access to Car/Vehicle or Smartphone empowers you to do the following
                                                                   (% of 4-5’s on 1-5 Scale)

           Car/Vehicle	
  
           Mobile	
  Smartphone	
  

100%	
          89%	
  86%	
     89%	
           89%	
  89%	
     87%	
           87%	
         85%	
  
                                                                                                                  90%	
  
                                                                                                              82%	
                                81%	
  
                                     80%	
                                                          79%	
                   76%	
  77%	
  
                                                                                      75%	
  
 80%	
                                                                  68%	
  
                                                                                                                                             62%	
  
 60%	
  
 40%	
  
 20%	
  
  0%	
  
              Accomplish         Gives me      Makes my life Explore Makes buying Experience Interact with Provide an       Learn
              day-to-day         sense of         easier     places I’ve things easier new things friends and escape from something
                 tasks           freedom                    never seen                               family   a hectic day   new
                                                               before

                                                                                                                                                             22
Age 35+:
Intersection of Car/Vehicle & Mobile Smartphone
     Having access to Car/Vehicle or Smartphone empowers you to do the following
                                                                 (% of 4-5’s on 1-5 Scale)

           Car/Vehicle	
  
           Mobile	
  Smartphone	
  

100%	
          92%	
           91%	
             90%	
                                             89%	
  
                                                      83%	
     86%	
           86%	
           84%	
         83%	
  
                      76%	
           76%	
                                                                                   72%	
  
 80%	
                                                                                                                                          71%	
  
                                                                                      60%	
                         64%	
         63%	
  
                                                                      53%	
                                                                 57%	
  
 60%	
  
 40%	
  
 20%	
  
  0%	
  
              Accomplish        Gives me        Makes my life Explore Makes buying Interact with Experience Provide an       Learn
              day-to-day        sense of           easier     places I’ve things easier friends and new things escape from something
                 tasks          freedom                      never seen                    family              a hectic day   new
                                                                before

                                                                                                                                                          23
Total Mobile Device Users:
Intersection of Car/Vehicle & Mobile Smartphone
     Having access to Car/Vehicle or Smartphone empowers you to do the following
                                                                 (% of 4-5’s on 1-5 Scale)

           Car/Vehicle	
  
           Mobile	
  Smartphone	
  

100%	
         90%	
  
                    81%	
  
                               90%	
            90%	
  86%	
     87%	
           86%	
           84%	
  
                                                                                                                       89%	
  
                                                                                                                  83%	
  
                                    78%	
                                                                                        74%	
  70%	
           76%	
  
 80%	
                                                                                 67%	
          71%	
  
                                                                       60%	
                                                                      59%	
  
 60%	
  
 40%	
  
 20%	
  
  0%	
  
             Accomplish       Gives me        Makes my life  Explore    Makes buying Experience                 Interact with Provide an     Learn
             day-to-day       sense of           easier     places I’ve things easier new things                 friends and escape from a something
                tasks         freedom                       never seen                                              family     hectic day     new
                                                              before

                                                                                                                                                                  24
The Rise of
 Ride/Car
 Sharing
 Services
Uber isn’t a household name just yet

While interest and usage of Car/Ride Sharing Services is on the rise, it hasn’t yet reached mass
awareness.

Unsurprisingly, those who would consider Car/Ride Sharing Services tend to be younger, more
urban, male and single.

Right now, about half of consumers would consider such services, so there still needs to be
more education and trust-building to court the other half of the market.

                                                                                                   26
Cars are the Dominant Form of Transportation with only
a Small Minority Using Car/Ride Sharing Services
                                     Thinking about the different forms of
                                       transportation you use, do you…

                                                            Total Mobile               Millennials
                                                          Smartphone Users            (Aged 18-34)     Aged 35+

Own a car/vehicle that you use for transportation	
             92%	
                       88%	
        96%	
  

Use a transit system for transportation (i.e.
                                                                13%	
                       17%	
        10%	
  
subway, metro, railway system, etc.)	
  

Use the bus for transportation	
                                12%	
                       18%	
        7%	
  

Use taxis for transportation	
                                  9%	
                         11%	
       7%	
  

Lease a car/vehicle that you use for transportation	
           8%	
                         11%	
       6%	
  

Use a car or ride sharing service for transportation
                                                                3%	
                         5%	
         1%	
  
(i.e. Lyft, Zipcar, Uber etc.)	
  
                                                                          5% in Urban DMAs use
                                                                          car/ride sharing services
                                                                                                                   27
While Car/Ride Sharing Services Have Grown
     Exponentially, Familiarity Has not yet Reached “Mass”
        I cant imagine my life without it                      4 (on 5 point scale)

              Total Mobile Smartphone Users                                                                      Millennials (18-34)                                                                        Age 35+
         Amazon	
                                    82%	
                       15%	
      97%	
                            83%	
                           14%	
     97%	
                                  80%	
                       16%	
   96%	
  
               Ford	
                        66%	
                          29%	
          95%	
                    61%	
                          32%	
               93%	
                                70%	
                      26%	
      96%	
  
            Apple	
  	
                       69%	
                         25%	
          95%	
                           73%	
                          22%	
        95%	
                            65%	
                        29%	
        94%	
  
               Nike	
                         68%	
                         26%	
          93%	
                         71%	
                           23%	
         94%	
                            65%	
                        28%	
        93%	
  
           Toyota	
                         62%	
                       32%	
              93%	
                    60%	
                          34%	
               94%	
                           63%	
                       30%	
          93%	
  
General	
  Motors	
                        55%	
                     36%	
               91%	
                   49%	
                         39%	
                88%	
                              62%	
                       33%	
          95%	
  
     Volkswagen	
                      47%	
                      40%	
               86%	
                      47%	
                     37%	
               84%	
                              46%	
                    42%	
                 88%	
  
             BMW	
                     47%	
                      38%	
               86%	
                       51%	
                        37%	
                88%	
                         44%	
                  40%	
                 84%	
  
              Xbox	
                       57%	
                    28%	
             84%	
                             66%	
                        27%	
             93%	
                       48%	
                28%	
           76%	
  
           Zip	
  Car	
   13%	
   20%	
   33%	
                                                        17%	
       24%	
             41%	
                                            9%	
   17%	
          26%	
  
              Uber	
   8%	
  15%	
   22%	
                                                            10%	
   20%	
         30%	
                                                5%      9%	
      14%	
  
                 LyR	
           13%	
     18%	
                                                      9%	
   18%	
         27%	
                                                      7%	
     10%	
  
                            6%                                                                                                                                                    2%

                                                                                                                                                                                                                                                 28
Half of Those Surveyed Would Consider Using
Car or Ride Sharing

                                     Would Consider                                                                                 Would Not Consider
                                Car/Ride Sharing Services                                                                        Car/Ride Sharing Services

                                                        52%                                                                                              48%

                               Indicated they would be interested in                                                              Are not very interested in using car
                                  using car sharing, branded car                                                                 sharing, branded car sharing, or ride
                                      sharing, or ride sharing.                                                                                 sharing.

                                 Selected Top 2 Box (4 or 5) on 5 point                                                           Did not select Top 2 Box (4 or 5) on 5
                                  scale for at least 1 of the car or ride                                                         point scale for at least 1 of the car or
                                            sharing services                                                                              ride sharing services

Q: How likely are you to use this service if it were available in your area? Please use a 1-5 scale where 5 means you would definitely use this service, and 1 means you would definitely not use this service.
                                                                                                                                                                                                                  29
Not Surprisingly, Millennials Lead Interest in Ride/
Car Sharing

                                                       Likely To Use Service If Offered In Your Area
                                                                                                        % Top 2 Box (4-5)

100%	
  
                       Total	
  Mobile	
  Smartphone	
  Users	
     Millennials	
     Aged	
  35+	
  

  80%	
  

  60%	
                                      51%	
                                                               48%	
                                                              46%	
  
                             40%	
                                                                 39%	
                                                             36%	
  
  40%	
                                                       30%	
                                                             29%	
                                                              26%	
  
  20%	
  

     0%	
  
                               Branded	
  Car	
  Sharing	
                                                  Car	
  Sharing	
  	
                                              Ride	
  Sharing	
  

Q. How likely are you to use this service if it were available in your area? Please use a 1-5 scale where 5 means you would definitely use this service, and 1 means you would definitely not use this service.
                                                                                                                                                                                                                  30
Demographic Profile: Those Surveyed
Who Would Consider Using Car or Ride Sharing
                                                                                     Would Consider    Would Not Consider
                                                                                    Ride/Car Sharing    Ride/Car Sharing

                                                                 Male                      55%                 45%
                                       Gender
                                                                Female                     45%                 55%

                                                           Millennials (18-34)             62%                 37%
                                         Age
                                                                Age 35+                    38%                 63%
 Those who would consider using
                                                             Urban DMA
    car/ride sharing services:          DMA
                                                                                           35%                 25%
                                                            Not Urban DMA                  65%                 75%
 • Are more likely to be male                                     City                     40%                 20%
 • Tend to be Millennials             Location                   Suburb                    40%                 49%
                                                       Small city/town/rural area          19%                 31%
 • Live in an urban DMA or city
                                  Rent or Own Home/               Own                      66%                 74%
 • Rent their home/apt                    Apt                     Rent                     34%                 26%
 • Single                                             Married/Living with someone          58%                 65%
 • Racially/ethnically diverse      Marital Status
                                                                 Single                    35%                 23%

   (non-white)                                        Divorced/Separated/Widowed
                                                                                            7%                 12%
                                                           Hispanic or Latino              15%                  8%
                                      Ethnicity
                                                         Not Hispanic or Latino            85%                 89%
                                                                 White                     74%                 89%
                                        Race           Black or African American           15%                 19%
                                                                 Asian                     10%                  6%
                                                                                                                            31
Behavioral Profile: Those Who Would Consider
Using Car or Ride Sharing
                                                                               Are looking for new and exciting things                                      Actively give and seek out advice
    Car ownership is still very important, but not as
                                                                                       to do or products to try
     important with other modes of transportation
                        available

 • 84% agree having their own car is important to them (91)         • 71% are always looking for new and exciting things to try (144)         • 76% agree that if they try something new and like it, they will
 • 29% agree that with all the car/ride sharing services that are   • 55% agree they are the first of their friends to try new things (166)     always tell others about it (111)
   available car ownership isn’t as important (705)                 • 21% consider themselves trend-setters (187) and 43% consider            • 55% seek advice before purchasing products/services (138)
                                                                      themselves adventurous (146)

                Like brands that are innovative,                                Up to date on technology trends, and                            Are more likely to buy products/services on impulse
              but also grounded in a brand history                                   prefer brands that are too

   • 72% prefer brands that innovate and try new things (136)
   • 60% agree it is important that brands have a history or        • 63% know more about new tech trends than their friends (174)            • 62% sometimes buy things on impulse (62%)
     heritage (150)                                                 • 69% prefer brands that are on the cutting edge of technology(137)

*Indexes are vs. those not interested in car/ride sharing services
                                                                                                                                                                                                                  32
The
 Connected
Car Decision
  Journey
The Beginning of a New Purchase Journey

Car ownership is still important and car/ride sharing services are on the rise. So how does car
connectivity impact behavioral and attitudinal shifts in the automotive space?

The findings in this study indicate that if connectivity has not yet become a major influence for
Millennials and other generations when it comes to their choices for automotive transportation,
it soon will.

The dramatic increase in volume of connectivity conversation over the past year, coupled with
the steep rise in conversation surrounding consideration of connectivity technology, points to a
future in which connectivity plays a much larger role in the automotive purchase journey.

                                                                                                    34
Main Takeaways from the Journey
• The connected car is a docking station. Consumers want their smartphones to integrate
  with their connected cars. Rather than purchase an additional technology ecosystem,
  consumers want to leverage what they already know and understand.
• Millennials are increasingly driving connectivity Consideration. The people considering
  buying a connected car are younger and have less purchasing power compared to individuals
  who considered buying a connected car the previous year.
• The differences in technology cycles between cars and phones are a frequent pain
  point. The different schedules of software updates and product rollouts is a common
  complaint among consumers, as well as a major driver of dissatisfaction about connected car
  technology.
• Connected cars need tech support. Automotive brands now need to treat their cars like
  technology products, providing frequent tech support and software updates.
• Connectivity is being talked about more and more. There was a 15% increase in
  conversation about automotive connectivity in 2013 compared to 2012.
• Connectivity is increasingly driving purchase consideration, and consideration is all
  about phones. Consideration conversation increased dramatically compared to the previous
  year. Within Consideration, phone integration is a dominant topic of conversation.

                                                                                                35
Connected Car Conversation
Below is a breakdown of all relevant connected car conversation during 2013.

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040   36
Outline of the Journey
There are seven phases in the connected car decision journey: Awareness (broken out into the
mass market and car enthusiasts), Consideration, During Purchase, Integration, Advocates,
Detractors, and Guidance.

                                                                                               37
Connected Car
Decision Journey
  Pre-Purchase
Pre-Purchase Decision Journey:
Awareness
Awareness: 68% (+15%)
• Awareness conversation consisted of individuals talking about innovations and developments in
  automotive connectivity.
• 40% of Awareness conversation was driven by Car Enthusiasts, a select group of individuals and
  industry insiders who discussed the trends and innovations of connected cars in great details. They
  are responsible for shaping connected car perceptions among consumers and potential buyers, and
  their topics of discussion range from manufacturer-specific innovations to software updates.
• The majority of Awareness conversation is driven by laymen; however, the topics that they cover are
  strikingly similar to those of Car Enthusiasts.
• Within Awareness, conversation focused primarily around the more high profile, futuristic innovations
  within automotive connectivity, such as self-driving cars technology and v2v communication
  protocols. This conversation drove nearly two out of every three posts within Awareness discussion.
  However, there is evidence to suggest that this trend is changing as the general public learns more
  about connected car technology. Awareness conversation has seen a 10% year-over-year decrease
  in post volume, which is even more significant because connected car conversation at large
  increased by 15% in 2013 compared to 2012.
                                                                                                           YOY
                                                                                                          -15%

                                                                                                 40%
                                                                                                                 39
“

 @Mahindrae2o love the “connected car” innovations.
 Haven’t driven it yet though.”
                                 – @OxyMoronify, Twitter
“

 Cars Are Fast Becoming #Smartphones on Wheels.
 #ConnectedCars http://t.co/NN7jBukzvF”
                                – @jopocop, Twitter
Pre-Purchase Demographics
Below is a breakdown of the demographic information of individuals engaging in Pre-Purchase conversation, benchmarked
against the general conversation surrounding automotive connectivity, as well as the average across Twitter.

                     Gender                                                  Family Status

                                                                                                                        42
Pre-Purchase Demographics

                   Personal Income      Age Breakdown

Number of unique Twitter users: 4,145                   43
Pre-Purchase Demographics

                                        Ethnicity

Number of unique Twitter users: 4,145               44
Pre-Purchase Demographics:
Occupation, Interests
                    Top Occupation      Top Interests

Number of unique Twitter users: 4,145                   45
Pre-Purchase Decision Journey:
Consideration
Consideration: 2% (359%)
• The massive year-over-year increase in volume of Consideration conversation suggests that
  connectivity is becoming increasingly more important when choosing a car to buy.
• These individuals have had their opinions surrounding car connectivity shaped by a
  combination of what they have learned during the Awareness phase of the decision journey,
  as well as online discussion driven by Connected Car Enthusiasts.
• However, conversation within connected car Consideration suggests that most individuals still
  view automotive connectivity as a luxury feature, something not essential in their automotive
  purchase.
• Automotive manufacturers’ connected car app ecosystems, smartphone integration, and
  built-in navigation systems were the most discussed types of connectivity within
  Consideration.
  – Automotive manufacturers’ apps were discussed within 25% of Consideration conversation
  – Smartphone integration via USB or Bluetooth was mentioned in 22% of the conversation
  – Navigation systems were discussed in roughly 18% of the conversation
                                                                                              (359%)
                                                                                              2%

                                                                                                       46
“

      I don’t need navigation, traffic reports, BMW Assist, Sirius radio, etc. I
                     know some of that is what makes a luxury car a luxury car but it
                     seems like a huge waste of money on expensive packages to me…”
                                                                                              – KassonVike, bimmerfest.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      I am in the process of researching a purchase and learning about
                     Audi Connect and the Navigation System. I do not think I would
                     want to spend the fee of $30.00 for the Audi connect, but is it tied
                     into the Navigation system? Is there a charge to just use the
                     Navigation system?”
                                                                                                   – buzzy8, edmunds.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Consideration Demographics
Below is a breakdown of the demographic information of individuals engaging in Consideration conversation, benchmarked
against the general conversation surrounding automotive connectivity, as well as the average across Twitter.

                     Gender                                                  Family Status

                                                                                                                         49
Consideration Demographics: Income, Age

                   Personal Income     Age Breakdown

Number of unique Twitter users: 4359                   50
Consideration Demographics: Ethnicity

                   Ethnicity

                                        51
Consideration Demographics: Occupation, Interests

                    Top Occupation     Top Interests

Number of unique Twitter users: 4359                   52
Types of Connectivity within Consideration
Below is a breakdown of the types of connectivity technology being discussed within Consideration conversation. This
conversation is broken down into three categories based upon consumer sentiment directed toward these technologies:
enthusiasm, skepticism, and indifference.

                                                        Connected Consideration

                                                                                                       Manufacturer apps, in-
                                                                                                       car navigation systems,
                                                                                                       and phone integration
                                                                                                       technologies drove the
                                                                                                       highest levels of
                                                                                                       consumer enthusiasm
                                                                                                       within consideration
                                                                                                       conversation. However,
                                                                                                       these three topics also
                                                                                                       drove the highest levels
                                                                                                       of skepticism.

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040                              53
Connected Car
  Decision
   Journey
    During
  Purchase
Purchase Decision Journey:
Declaration During Purchase
During Purchase: 2% (-24%)
• Within this conversation, many people listed their car’s connected features alongside other
  popular motivators for purchasing cars, such as leather seating and engine size.
• While individuals may discuss the higher end, more expensive connected car features during
  the Consideration process, individuals base their purchases around features that integrate
  with their phones and do not incur the same costs as built-in car connectivity.
  – Conversation surrounding smartphone integration dramatically increased within
    Declaration of Purchase discussion, driving 25% more volume compared to Consideration
  – Conversation surrounding built-in navigation systems plummeted compared to the levels it
    drove within Consideration, decreasing 66%
• Within this conversation, dealership experiences emerged as a small but important topic of
  discussion.
  – People shared their experiences with a dealer in 4% of Declaration of Purchase
    conversations
  – Only 30% of people who talked about their dealership experiences said that they had been
    helped by their dealers with their connected car features                                 -24%

                                                                                                2%

                                                                                                     55
“

      OK...it is official...13’ E92 ordered...
                     ...LeMans Blue, Black Novillo, Brushed Alum Trim, ZCP - Competition
                     pkg, ZPP - Premium pkg, DCT, Heated Seats, Sat Radio, BMW Apps….”
                                                                                                   – Sandman99, m3post.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      My Cadilllac dealer sales person spent an hour with me customizing
                     my options in my car prior to leaving with it...Setting up blue tooth,
                     phone options, voice recognition the works, followed by answering all
                     question about anything inside of the car until I had all of the info I
                     wanted prior to leaving...”
                                                                                         – CTSCHICK, CadillacForums.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Connected Car
Decision Journey
 Post-Purchase
Post-Purchase Decision Journey:
Integration/Updating
Integration/Updating: 2% (-24%)
• Connected cars are discussed similarly to technology: people enter into a Post-Purchase period where they install the
  needed software/firmware and get the technology working. As connected cars and smartphones do not follow the
  same development cycles, this has the potential to create a great deal of confusion among a consumer group with little
  experience with treating their cars the same way they treat other tech products.
• Integration/Updating is a crucial step in the connected car Purchase Decision Journey, because whether or not
  consumers are able to successfully use their car’s technology influences the path these individuals will take in their
  decision journey.
• Within this phase, individuals often reach out online to ask for help with their new cars. This behavior most commonly
  occurs in forums.
  – People asked questions about integrating smartphones with their connected cars in roughly 42% of all Integration/
    Updating conversation, increasing in volume roughly 50% compared to Declaration of Purchase
  – Voice recognition/control applications, such as Siri in the car, also drove large amounts of chatter, discussed in 15%
    of all posts
  – Manufacturer-specific connected ecosystems, such as Ford Sync, slightly increased in volume within Integration/
    Updating, driving a total of 14% of posts, a 10% increase from Declaration of Purchase conversation
  – Roughly 4.5% was driven by people discussing upgrading their car’s software or firmware
                                                                                                                             -24%

                                                                                                                               2%

                                                                                                                                    59
“

      Can Sygic Navigation audio be routed through Sync? Certainly not
                     with this version, but can there be a Version update from Microsoft?
                     On the Microsoft Sync Ford webpage, I did notice Sygic app sync but
                     for vehicles like Explorer and Mustang.”
                                                                                              – vu2pmc, www.team-bhp.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      Hey there is a update for my car. I hope it fixes some bugs they made
                     from the last update. #myfordtouch #fordsync”
                                                                                                       – @yellowmello, Twitter

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Post-Purchase Decision Journey:
Advocates
Advocates: 13% (124%)
• These individuals often go to great lengths to express their passion for their connected cars,
  most commonly writing long form content to express their love in rigorous detail.
• Positive experiences within Advocacy were focused in two areas:
  – Connected car apps drove 30% of conversation.
    • A particularly devoted group of individuals within this conversation talked glowingly about
      Ford’s Sync connected car technology, mentioning how they “loved” how seamlessly it
      connected with their phones.
  – Smartphone integration drove 19%
• A potentially worrisome trend is that Detractor conversation has grown more than twice as
  much as Advocacy conversation.
  – This suggests that consumers are not receiving adequate levels of customer support for
    their connected cars
  – Brands that make a point to nurture their customers, and continue to ensure that their
    technical support needs are adequately addressed well past driving off the lot, have the
    potential to build devoted advocates
                                                                                                    (124%)

                                                                                              13%
                                                                                                             62
“

      I’m so happy my car has a usb port so i can charge my phone.
                         i just love my car.”
                                                                                                       – lko_x, Twitter

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      I love it!! the Harmon Kardon sound system is very nice, loud and
                         clear but i’m not an audiophile type. Mini Connected works great w/
                         my iPhone 4 and 4S; so if you have an iPhone its def worth it but if
                         you don’t have an iPhone then mini connected isn’t really worth there
                         isn’t an android version yet...
                         ...However, USB media player functions work w/android and also via
                         BT if your phone can stream audio over Bluetooth….
                         I haven’t gotten used the voice commands since using the navigation
                         **** in the middle works pretty good once you get a hang of the
                         menu systems....”
                                                                               – jimmyselix, northamericanmotoring.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Post-Purchase Decision Journey:
Guidance
Guidance 5% (-18%)
• Those providing guidance are extremely knowledgeable, and used their knowledge to provide
  technical support to owners of connected cars.
  – They can help move people away from Detractors, and toward Advocates.
  – Forums were the dominant platform for these individuals (allowed them to communicate
    complex, long form posts that provided the best possible advice).
  – There were not enough people Providing Guidance to adequately address the volume of
    conversation from people within the Integration/Upgrading and Detractors phases of the
    decision journey.
    • Providing Guidance conversation decreased 18% in volume relative to the previous year
      (while Detractors and Advocates conversation more than doubled).
    • Because of the increasing scarcity of people learned in connected car technology online,
      brands that step in and provide much needed consumer education in a market with a
      great deal of confusion will build brand loyalty and drive advocacy in the process.
                                                                                                 (-18%)

                                                                                                    5%

                                                                                                          65
“

      ..Yes, MFT (MyFordTouch) automatically updates itself about every
                     two weeks and fixes bugs and such. Even when it is out of warranty it
                     will continue to do this….”
                                                                                          – kpjb24, www.focusfanatics.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      Interestingly, my friends and I were talking about this issue last night.
                     If you lock your car either with the remote or from the inside, you
                     CAN NOT unlock it unless with remote or BMW Assist. Regardless if
                     your second remote is in the car. Most Japanese cars are not able to
                     lock doors with the remote (your spous’s extra key etc)inside the car.
                     Althought BMW call this an anti theft feature, IMO, this is one safety
                     issue they need to reconsider. I think Coding will help with this.”
                                                                                           – M3ZCP6MT, www.m3post.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Post-Purchase Decision Journey:
Detractors
Detractors: 8% (262%)
• Detractors are individuals who express strong dissatisfaction with a connected car brand.
• Problems connecting a smartphone to a connected car dominated this conversation.
• Many consumers are unprepared for the challenges of treating a car like another tech
  product.
  – 50% of conversations focused on individuals complained about a problem with their phone
     connecting to their car.
  – The volume of discussion surrounding connected car software updates increased in volume
     by 156% compared to Integration/Upgrading conversation.
  – This provides further evidence that the different technology cycles between automotive
     and technology products are directly affecting the consumer in adverse ways.
• If these individuals continue to have trouble getting their purchases to work, they will move on
  to sabotage car brands.
• Detractors were similar to Advocates in that they often talked about their connected cars at
  length, with the key difference being that they articulated the nuances of how their connected
  car had failed to fulfill their expectations.
                                                                                                    (262%)

                                                                                               8%

                                                                                                             68
“

      Hey, this car has bluetooth; let me play a song on my phone! Wait, it
                  is a #Ford and Sync is a joke. Never mind.”
                                                                                  – Cool_V_300C, 300cforums.com, Forum

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
“

      Ford Sync is such a piece of s*$#. The blue tooth is horrible. Hardly
                  ever connects to my phone on its own.”
                                                                                                       – @ItsJoeNotJoel, Twitter

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Relevant mentions: 236,040
Post-Purchase Demographics
Below is a breakdown of the demographic information of individuals engaging in Post-Purchase conversation, benchmarked
against the general conversation surrounding automotive connectivity, as well as the average across Twitter.

                               Gender                                         Family Status

Number of unique Twitter users: 4,145                                                                                    71
Post-Purchase Demographics: Income & Age

                   Personal Income      Age Breakdown

Number of unique Twitter users: 4,145                   72
Post-Purchase Demographics: Ethnicity

                                        Ethnicity

Number of unique Twitter users: 4,145               73
Post-Purchase Demographics:
Occupation, Interests
                    Top Occupation      Top Interests

Number of unique Twitter users: 4,145                   74
Brand Factor
  Analysis
Introduction to Brand Factor Analysis
We took a deeper dive to see how consumers perceived specific brands, especially in terms of
innovation and market leadership.

Most of the major auto brands that we asked respondents to evaluate ranked below non-
automotive brands on key metrics related to Innovation/Disruption and Personal Connection.

  • Amazon, Apple, Uber, Zipcar, and Lyft outperform industry stalwarts Volkswagen and General
    Motors.

  • Ford and Toyota received the highest ratings among automotive brands.

  • There is a clear opportunity for savvy automakers to improve these perceptions, and meet the
    changing demands of consumers.

                                                                                                 76
A Factor Analysis Uncovered That Brand
Attributes Are Grouped into 2 Categories

                                       Innovative & Disruptive
       Personal Connection
                                              Leaders

   • Understands people like me     • Is doing things that are new
   • Makes me happy                   and innovative

   • Empowers me to do the things   • Is on the cutting edge
     I want to do                     of technology

   • Offers what I want –           • Is a leader not a follower
     and delivers                   • Is changing the way people live
   • Is a company I can relate to     their lives

                                                                        77
Brand Perception Mapping
              Innovative & Disruptive Leader                                                        0.25	
  

                                                                                                    0.15	
  
                                                                                                                        Apple	
                                 Amazon	
  

                                                                                         Xbox	
   0.05	
  
                                                                                                                      Uber	
  
                                                                                                     Zipcar	
  
                                                                               BMW	
  
                                               -­‐0.25	
     -­‐0.15	
               -­‐0.05	
   Toyota	
   Ford	
   0.05	
                        0.15	
                          0.25	
  
                                                                                           Nike	
  -­‐0.05	
   LyK	
  

                                                                           VW	
  
                                                                                    GM	
           -­‐0.15	
  

                                                                                                   -­‐0.25	
  

                                                                                      Personal Connection

Q. Below is a list of statements that could be used to describe [INSERT BRAND NAME]. Please indicate how well each statement describes [INSERT COMPANY NAME] on a scale of 1 to 5 where 5 means the
statement describes [INSERT BRAND NAME] very well, and 1 means the statement doesn’t describe [INSERT BRAND NAME] at all.                                                                             78
We Asked Consumers: If You Were a Car, What
Brand of Car Would You Be?

mercedes
   dodge chevy
                    ford
                       honda  gmc       jeep
                                                                           ferrari                  lexus
                                                                                                       nissan

             toyotabmw
                               mazda
                                               volvo
                                                                audi
                                                                corvette
                                                                                                tesla

                                                                                        lamborghini     lincoln
                                                                                                        cooper            volkswagen             subaru
                    nothing
                                       rover
                                       kia
                                                                             vw                                                           dont   buick
                                                                                                                                cadillac
                                                                                                                                 hybrid

              car                                 bentley
    jaguar                                         idea

  hyundai
                                                      charger

                                                                                                                                porsche
                                                                                                                                     know

                                                                                        chevrolet
                                                   jetta                                                          civic

             mustang                                  acura                  chrysler
                                               mini                                          benz

                                                                                                                                                          79
Brand Perceptions – Innovative Brands
                                                                                     Brand Perceptions
                                                                                         (Top 2 Box - 4,5)

                                                                 Aggregate	
  Inn.	
  
                                                                  Brand	
  Avg.	
        Apple	
                       Amazon	
                          Xbox	
                           Nike	
  

  Is	
  a	
  leader	
  not	
  a	
  follower	
                            77%	
             84%	
                           83%	
                           69%	
                           72%	
  
  Is	
  doing	
  things	
  that	
  are	
  new	
  and	
  
                                                                         74%	
             83%	
                           81%	
                           71%	
                           61%	
  
  innovaZve	
  
  Is	
  easy	
  to	
  buy	
  or	
  use	
                                 74%	
             70%	
                           87%	
                           69%	
                           71%	
  

  Is	
  on	
  the	
  cu\ng	
  edge	
  	
  of	
  technology	
             72%	
             84%	
                           79%	
                           70%	
                           54%	
  

  Offers	
  what	
  I	
  want	
  –	
  and	
  delivers	
                   68%	
             70%	
                           84%	
                           60%	
                           57%	
  
  Is	
  changing	
  the	
  way	
  people	
  live	
  their	
  
                                                                         67%	
             81%	
                           80%	
                           62%	
                           43%	
  
  lives	
  
  Is	
  a	
  company	
  I	
  can	
  relate	
  to	
                       64%	
             64%	
                           79%	
                           59%	
                           53%	
  

  Understands	
  people	
  like	
  me	
                                  62%	
             65%	
                           80%	
                           52%	
                           50%	
  

  Makes	
  me	
  happy	
                                                 61%	
             63%	
                           77%	
                           57%	
                           46%	
  
  Empowers	
  me	
  to	
  do	
  things	
  I	
  want	
  
                                                                         58%	
             65%	
                           72%	
                           51%	
                           44%	
  
  to	
  do	
  

Q. Below is a list of statements that could be used to describe [INSERT BRAND NAME]. Please indicate how well each statement describes [INSERT COMPANY NAME] on a scale of 1 to 5 where 5 means
the statement describes [INSERT BRAND NAME] very well, and 1 means the statement doesn’t describe [INSERT BRAND NAME] at all.                                                                        80
Brand Perceptions – Automotive Brands
                                                                            Brand Perceptions
                                                                                          (Top 2 Box - 4,5)

                                                           Aggregate Auto
                                                                              BMW                        Toyota                       Ford                        GM                          VW
                                                                Avg

  Is	
  easy	
  to	
  buy	
  or	
  use	
                        59%	
           45%	
                      69%	
                       70%	
                      55%	
                       56%	
  
  Is	
  doing	
  things	
  that	
  are	
  new	
  and	
  
                                                                59%	
           67%	
                      66%	
                       64%	
                      49%	
                       47%	
  
  innovaZve	
  
  Is	
  a	
  leader	
  not	
  a	
  follower	
                   58%	
           71%	
                      63%	
                       59%	
                      47%	
                       49%	
  
  Is	
  on	
  the	
  cu\ng	
  edge	
  	
  of	
  
                                                                55%	
           68%	
                      60%	
                       59%	
                      43%	
                       47%	
  
  technology	
  
  Offers	
  what	
  I	
  want	
  –	
  and	
  delivers	
          49%	
           53%	
                      58%	
                       54%	
                      41%	
                       40%	
  

  Understands	
  people	
  like	
  me	
                         48%	
           48%	
                      52%	
                       56%	
                      45%	
                       39%	
  

  Is	
  a	
  company	
  I	
  can	
  relate	
  to	
              48%	
           45%	
                      54%	
                       57%	
                      46%	
                       37%	
  

  Makes	
  me	
  happy	
                                        44%	
           51%	
                      47%	
                       48%	
                      38%	
                       37%	
  
  Is	
  changing	
  the	
  way	
  people	
  live	
  
                                                                44%	
           46%	
                      49%	
                       51%	
                      38%	
                       35%	
  
  their	
  lives	
  
  Empowers	
  me	
  to	
  do	
  things	
  I	
  want	
  
                                                                41%	
           46%	
                      44%	
                       46%	
                      36%	
                       33%	
  
  to	
  do	
  

Q. Below is a list of statements that could be used to describe [INSERT BRAND NAME]. Please indicate how well each statement describes [INSERT COMPANY NAME] on a scale of 1 to 5 where 5 means the
statement describes [INSERT BRAND NAME] very well, and 1 means the statement doesn’t describe [INSERT BRAND NAME] at all.                                                                               81
Brand Perceptions – Car/Ride Sharing Services
                                                                                       Brand Perceptions
                                                                                                     (Top 2 Box - 4,5)

                                                                         Aggregate	
  Car/Ride	
  
                                                                            Sharing	
  Avg	
                     Uber	
                        Zipcar	
                                LyK	
  

  Is	
  doing	
  things	
  that	
  are	
  new	
  and	
  innovaZve	
                67%	
                          71%	
                           68%	
                                 61%	
  

  Is	
  a	
  leader	
  not	
  a	
  follower	
                                      66%	
                          67%	
                           68%	
                                 62%	
  

  Is	
  changing	
  the	
  way	
  people	
  live	
  their	
  lives	
               64%	
                          67%	
                           65%	
                                 60%	
  

  Is	
  on	
  the	
  cu\ng	
  edge	
  of	
  technology	
                           63%	
                          67%	
                           59%	
                                 62%	
  

  Is	
  easy	
  to	
  buy	
  or	
  use	
                                           61%	
                          66%	
                           56%	
                                 60%	
  

  Offers	
  what	
  I	
  want	
  –	
  and	
  delivers	
                             58%	
                          67%	
                           49%	
                                 59%	
  

  Understands	
  people	
  like	
  me	
                                            57%	
                          61%	
                           53%	
                                 57%	
  

  Is	
  a	
  company	
  I	
  can	
  relate	
  to	
                                 57%	
                          60%	
                           50%	
                                 60%	
  

  Empowers	
  me	
  to	
  do	
  things	
  I	
  want	
  to	
  do	
                  57%	
                          59%	
                           52%	
                                 59%	
  

  Makes	
  me	
  happy	
                                                           54%	
                          58%	
                           47%	
                                 56%	
  

Q. Below is a list of statements that could be used to describe [INSERT BRAND NAME]. Please indicate how well each statement describes [INSERT COMPANY NAME] on a scale of 1 to 5 where 5 means
the statement describes [INSERT BRAND NAME] very well, and 1 means the statement doesn’t describe [INSERT BRAND NAME] at all.                                                                     82
IN-CAR APPS &
 AUTOMOTIVE
CONNECTIVITY
    INDEX
Top Insights: White Space for Auto Brands
• There is currently no automotive brand that is driving high levels of connected
  satisfaction. All the leading OEMs we studied that over-indexed in connectivity conversation
  also under-indexed in consumer satisfaction with their connected technology. Inversely, the
  brands that drove the largest amount of satisfaction around their connected cars saw the
  least conversation driven by connectivity. These trends suggest that there is no current OEM
  that consumers view as “most connected” from a positive perspective.
• Dodge was perceived as the most connected car by consumers on social media, though
  a large portion of conversation was driven by negative experiences. The most discussed
  connectivity technologies also drove significant levels of negative conversation. For example,
  consumers frequently said Dodge’s Uconnect disconnected from their phones, and some
  even said they were seeking aftermarket stereos because Uconnect would not play their
  phone’s music.
• Overall, connectivity was not top-of-mind among consumers when they discussed the
  leading automotive brands. The average percentage of conversation that mentioned
  automotive connectivity among the leading OEMs was roughly 3%.

                                                                                                   84
Top Insights: Marketing Opportunities for
Promoting Connectivity
• Automotive brands need to focus more of their brand messaging around their
  connectivity features. There is still relatively little consumer Awareness about connected
  technology among the leading OEMs. Because conversation around connected cars has
  increased by roughly 15% in 2013 versus 2012, this puts additional urgency on brands
  needing to spread their messaging and drive perception within the increasingly younger
  audience that their cars are more connected than their competitors.
• The most talked about OEMs on social media tended to have their connectivity features
  discussed less. There was a direct correlation between the level of overall conversation
  around an automotive brand and the low share of voice driven by connectivity technology.
  This trend suggests there is an opportunity for the less socially discussed OEM brands to
  utilize the growing conversation surrounding automotive connectivity to build brand equity.
  Manufacturers who build high levels of Awareness around their connected car technologies
  have the potential to become top-of-mind among consumers within this market, a market
  that is seeing large amounts of growth driven by a highly actionable consumer segment.

                                                                                                85
Leading OEMs’ Connectivity Perception
Below is a breakdown of automotive connectivity surrounding the leading OEMs. Position is determined by the total percentage of
conversation that mentions connectivity, as well as the positive versus negative perception of the brands’ connectivity technologies.

                                                                        POSITIVE
                                                                                       Example of Hyundai
                                                                                       Positive Conversation
                                                                                       “In love with Hyundai Sonata”
                                                                                       – @farabees, Twitter

                                                                                                                                                                HIGHEST CONNECTIVITY
 LOWEST CONNECTIVITY

                                Example of Nissan Non-                                Example of BMW Negative Conversation
                                Connectivity Conversation                             “The built-in maps on my 2012 X3 and 2011
                                “how do i connect my i phone to my                    ActiveE do a terrible job of routing to
                                04 altima without an aux input?”                      destinations in San Francisco...”
                                – @PSMcClain, Twitter                                 – MurrayX3 on 5post.com, forum

                                                                                                   Example of Dodge Connectivity Conversation
                                                                                                   “I have a 2013 Dodge Avenger SXT with Uconnect 130. I
                                                                                                   usually plug my iPod nano into the USB so I can control it
                                                                                                   through the radio, however today I’m having problems”
                                                                                                   – Cyingling12, dodgeforum.com, forum
                                                                        NEGATIVE

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Total mentions: 60,263,480                                                                                   86
Connectivity Sentiment By Brand
    Below is a breakdown of each connectivity sentiment by OEM.

                                                                    Positive      Neutral        Negative

                               8.3%     5.63%     13.8%     27.7%     12.3%       1.5%       1.5%       6.9%   17.2%   15.8%   24.3%     5.6%
                      100%
                      90%
                      80%
Percentage of Total

                      70%
                      60%
                               82.7%     70%       75%     42.6%      48.1%      71.6%      76.8%      86.3%   61.4%   48.7%   35.1%     77.5%
                      50%
                      40%
                      30%
                      20%
                      10%
                               8.97%     22%      11.2%    28.7%      39.6%      26.9%      21.7%       6.9%   21.5%   35.5%   40.5%     16.9%
                       0%

                        Brands that drove the highest levels of connectivity discussion also saw a corellating increase of negative sentiment.

     Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Total mentions: 60,263,480                                        87
Brand Connectivity Breakdown: Share
of Conversation
Below is a breakdown of the leading OEMs by level of total conversation mentioning connectivity, as well as total discussion
around each manufacturer.

                              Percentage Of Total Connectivity Discussion
                             Dodge drove the largest percentage of connectivity discussion by a wide margin.

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Total mentions: 60,263,480                           88
Brand Connectivity Breakdown: Conversation
Volume
Below is a breakdown of the leading OEMs by level of total conversation mentioning connectivity, as well as total discussion
around each manufacturer.

                                                                   Total Volume
                  The brands that drove the most volume often did not drive high levels of connectivity discussion.

Sources: Twitter, Blogs, Forums, public Facebook Dates: 1/1/13 - 12/31/13 Total mentions: 60,263,480                           89
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